Naphtha cracks in Asia end previous week at highest in 3-1/2 months on tighter prompt supplies

29-Aug-11

Last week ended in Asia with cracks firm at their highest in 3-1/2 months as traders cited tighter prompt supplies, as per Reuters. Honam Petrochemical, South Korea's third-biggest of six naphtha cracker operators, will shut a 1 mln tpa cracker at Daesan for a month-long maintenance starting H1-October. However, the shutdown may not have a sharp impact on the market as it comes at a time when there are limited European exports to Asia and expectations of India capping exports at around 850,000 tons. The price for open spec naphtha for front-month H1-October dipped by a dollars to US$965/ton. Naphtha cracks inched up to US$138.20/ton premium, highest since May 12.